New Delhi, Aug 23 (KNN) Some of the neighbouring countries of India are taking the routes through countries like Sri Lanka, Bangladesh and Maldives to import goods at concessional duty rates to India which is hitting hard the MSME sector of the country, alleged the Federation of Punjab Small Industries Associations (FOPSIA).

Talking to KNN, Badish k Jindal, President, FOPSIA, said, “We have reached the agreements under the South Asian Free Trade Agreement (SAFTA) where imports can be done on concessional rates of duties from countries like Sri Lanka, Bangladesh and Maldives.”

He said companies from India’s neighbouring countries and Indian importers have opened the offices in such countries. They import the material from them to Bangladesh and then they send those materials to India with the concessional rates of duties.

“Now they are taking benefit out of this route on any material where import duty is high. These companies are misusing SAFTA. Due to this reason import from the Bangladesh has increased by up to Rs. 4800 crore which was around Rs. 2300 crores two years back,” he said.

Explaining the issue, Jindal said till 2011-12, no complete bicycle came to India from Sri Lanka and Bangladesh.

“In 2012-13, we had fixed 30 per cent import duty on complete manufactured bicycle. Later the Indian importers had started to import material, dumped by neighbouring countries, from Bangladesh and Sri Lanka where they have to pay only four per cent duty,” he said.

“If importers directly import from the source then they have to pay a duty of 30 per cent,” he added.

Slamming the government on policy formation, he termed Indian Government’s policies anti-industry.

He said “Government is not putting duties on manufactured products but instead they are putting duties on raw materials. They want that raw material should not come from outside the country so that the monopoly of big players can remain in the market.”

Referring to the data of Ministry of Commerce and Industry, Jindal stated that the imports from China to India surges up from Rs 3,09,234 crore to Rs 4,04,012 crore with an increase of around 29 per cent, whereas during the same period, the exports from India to China dipped down from Rs 90,561 crore to Rs 59,052 crore from 2014 to 2016.

This data does not make any sense of Make in India, he said.

Commenting on Make in India programme, the entrepreneur said “The government should review the strength of India. We have to go with the issue of employment generation in India. Make in India would only be successful if the finished products would stop to come in India.”  

FOPSIA President further alleged “An inquiry should be conducted to check India growing trade deficit with its neighbours.” (KNN Bureau)